Morningstar: Demand for high-quality office buildings in Singapore expected to remain resilient

Xavier Lee of Morningstar stated in a report that, despite geopolitical challenges this year, demand for premium office space in Singapore may remain resilient. The analyst cited data from real estate services provider CBRE that the vacancy rate for Grade A office space in the city-state had dropped to its lowest level since the first quarter of 2024 by the end of 2025. He predicted that as tenants navigate uncertain economic prospects due to the Middle East conflict, the vacancy rate would stabilize. He added that if commercial confidence returns, the vacancy rate could tighten by 2027. In the real estate investment trust sector focused on office space, he favored Keppel REIT due to its high-quality portfolio and potential for substantial dividend payouts. Morningstar valued Keppel REIT at 1.10 Singapore dollars, with the stock rising 1.1% to 0.89 Singapore dollars.